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purchasing a home with (non-contracted) tenant

Investor from York, Pennsylvania

posted almost 4 years ago

Hello. I am looking for insight on verbal contracts and how they may hold up in court. I am getting ready to purchase a home for an elderly lady. She is currently slowing her daughter an kids to live there and they pay the bills as they come. Mortgage, taxes, utilities, and maintenance. Now there was never any contracts made all just by verbal agree ment. And I'm not sure who's name the payments have been recorded under. The question I have is does the daughter have any legal rights as a normal tenant would. The reason being is she threatened the mother to sue if she sold the house. Thanks in advance to anyone with insight

from Urbana, IL

replied almost 4 years ago

She won't have much recourse. Its a word for word type situation which really isn't going to hold up in court too well. Its one party versus another. I would have to say if the daughter is willing to sue her own family over the matter I'd get that person out ASAP.

Keep in mind, you could do a cash for keys situation. Pay the daughter enough to move out and leave the property broom clean. That amount should be enough to pay first months deposit on a new place, some money for moving expenses, and maybe a little extra cuz you're nice. If she stays (as a squatter) you can explain that you can start the eviction process. Its more costly on your part and time consuming and stressful but it would be for her as well. Approach the situation nicely and offer to help her out - if she refuses you'll be left with no recourse but an eviction that will end up on her backround check therefore holding her back on future rentals.

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